Best Securities Lawyers in Hawaii

About Securities Law in Hawaii, United States

Securities law in Hawaii governs the issuance, sale, and trading of financial instruments such as stocks, bonds, mutual funds, and other investment vehicles. These laws are designed to protect investors from fraudulent practices, ensure transparency in the market, and promote fairness. Securities regulation in Hawaii is a combination of state law, primarily through the Hawaii Uniform Securities Act, and federal law overseen by agencies such as the Securities and Exchange Commission (SEC). The Hawaii Department of Commerce and Consumer Affairs (DCCA), specifically its Securities Enforcement Branch, is responsible for enforcing securities laws at the state level.

Why You May Need a Lawyer

Navigating securities law can be complex, especially for individuals and small businesses unfamiliar with legal and regulatory requirements. Here are some common situations where legal advice is important:

• Selling or offering investment products or securities to Hawaii residents
• Responding to an investigation or enforcement action related to alleged securities law violations
• Starting a business and seeking investment through the sale of shares or other securities
• Reviewing private placement offerings, crowdfunding efforts, or public offerings
• Defending against charges of fraud, misrepresentation, or unregistered securities sales
• Understanding exemptions from registration or qualification under Hawaii law
• Protecting yourself as an investor when you suspect fraudulent or misleading conduct
• Participating in securities arbitration and dispute resolution

A lawyer specializing in securities law can help ensure compliance, minimize liability, handle disputes, protect your interests during investigations, and help navigate state and federal regulations.

Local Laws Overview

Hawaii's securities laws are primarily governed by the Hawaii Uniform Securities Act (Chapter 485A, Hawaii Revised Statutes). Here are key aspects you should be aware of:

• Registration Requirements: Most securities offered or sold in Hawaii must be registered with the Securities Enforcement Branch unless an exemption applies.
• Exemptions: Certain securities and transactions may be exempt from registration, such as intrastate offerings, private offerings to a limited number of persons, or offerings limited to sophisticated investors.
• Broker-Dealer and Agent Licensing: Individuals and firms engaging in the business of effecting securities transactions must be registered and licensed with the state.
• Fraud Provisions: It is unlawful to employ any device, scheme, or artifice to defraud, make untrue statements of material fact, or engage in any fraudulent activity related to the sale of securities.
• Enforcement and Penalties: The DCCA's Securities Enforcement Branch can investigate potential violations and bring enforcement actions that may result in fines, injunctions, or criminal prosecution.
• Investor Protections: State and federal laws require disclosure of essential information to investors. This includes risks, costs, and details about the investment to promote informed decision-making.

Frequently Asked Questions

What is considered a security in Hawaii?

A security can include stocks, bonds, notes, investment contracts, mutual funds, limited partnership interests, and other instruments commonly recognized as investments. The definition is broad and may include some unconventional arrangements if they involve an investment of money with an expectation of profit from the efforts of others.

Do all securities have to be registered in Hawaii?

Most securities offered or sold in Hawaii must be registered unless they qualify for an exemption under the Hawaii Uniform Securities Act. Exemptions include certain private sales and sales to sophisticated investors, but it is important to verify with a professional before proceeding.

Who regulates securities in Hawaii?

Securities are regulated by both the Securities Enforcement Branch of the Hawaii Department of Commerce and Consumer Affairs (DCCA) and federal regulators, such as the Securities and Exchange Commission (SEC).

How do I know if a broker or investment advisor is licensed in Hawaii?

You can verify the licensing status of brokers and investment advisors by contacting the Hawaii DCCA or using resources such as the Financial Industry Regulatory Authority (FINRA) BrokerCheck tool.

What are the penalties for violating securities laws in Hawaii?

Penalties can include civil and administrative fines, restitution to investors, suspension or revocation of licenses, and in serious cases, criminal charges that may result in imprisonment.

Can I recover my money if I have been a victim of securities fraud?

Victims of securities fraud can pursue recovery through civil litigation, state enforcement actions, arbitration, or mediation. Consulting a securities lawyer is essential for evaluating your options.

Is crowdfunding allowed for Hawaii businesses?

Yes, crowdfunding is permitted, but businesses must comply with both state and federal regulations, including specific disclosure and registration requirements unless they qualify for an exemption.

Does Hawaii follow any federal securities laws?

Yes, Hawaii businesses and individuals must comply with both state securities laws and federal statutes such as the Securities Act of 1933 and the Securities Exchange Act of 1934.

Are all investment opportunities required to provide a prospectus?

Not all offerings require a prospectus, but most registered offerings do. Exempt offerings may have alternative disclosure requirements. It is good practice to request and review disclosure documents before investing.

Where can I file a complaint about securities fraud in Hawaii?

You can file a complaint with the Securities Enforcement Branch of the Hawaii DCCA. Providing detailed information and supporting documents will assist in the investigation.

Additional Resources

Here are some helpful resources and organizations for those seeking information or legal assistance related to securities in Hawaii:

• Hawaii Department of Commerce and Consumer Affairs (DCCA) - Securities Enforcement Branch: The principal state regulatory authority for enforcement and compliance matters.
• U.S. Securities and Exchange Commission (SEC): The federal agency responsible for enforcing federal securities laws and protecting investors.
• Financial Industry Regulatory Authority (FINRA): Oversees broker-dealers and provides dispute resolution services.
• Hawaii State Bar Association: Offers lawyer referral services for those seeking experienced securities law practitioners.
• Investor Protection Trust: Provides investor education and resources to help avoid fraud and understand rights.

Next Steps

If you need legal assistance regarding securities issues in Hawaii, consider taking these steps:

• Identify your specific legal issue, such as investing concerns, registration questions, or compliance matters.
• Gather all relevant documents, contracts, correspondence, and investment materials.
• Contact the Hawaii Department of Commerce and Consumer Affairs Securities Enforcement Branch for preliminary guidance or to file complaints.
• Consult with a lawyer specializing in securities law in Hawaii. Use the Hawaii State Bar Association's lawyer referral service if you do not already have a trusted attorney.
• If you are contacted by a regulator or served with legal documents, do not ignore these communications. Seek legal counsel immediately to protect your rights and interests.
• Consider educational resources from regulatory agencies to better understand your rights and responsibilities as an investor or business owner.

Remember, early legal assistance can prevent costly mistakes and help ensure compliance with all applicable laws, whether you are an investor, issuer, or professional involved in securities transactions.